Deductions & credits

Well I understand it now.  In my case, the K-1 Box 1 was blank, but I had to select it anyway in TT and then just leave it blank - then  you can say No to materially participate and TT then asks if it's an O&G company, to which you reply Yes.  That makes it NonPassive income/Loss.  You then enter the IDC loss when prompted and any other expenses/losses.  Those losses reduce your ordinary taxable income.